Real Imran Khan

Prime Minister Imran Khan has decided to break the cartels and come down with a heavy hand on hoarders, profiteers and elements involved in food adulteration. This is what people expected from him. He has directed federal and provincial authorities to prepare a national action plan for implementing measures to bring to justice mafias responsible for price hike and food adulteration.

.The Prime Minister also chaired a high level meeting to review the results of administrative actions against surging prices of basic commodities of daily consumption, profiteers and sellers of adulterated food commodities. He directed for speeding up the process for the establishment of National Demand and Supply Cell. The setting up of this cell and utilizing its input for maintaing demand supply equilibrium will help in achieving stability in prices of essential consumer’s goods. Its regular feedback will apprise the relevant federal ministries to take supply augmenting measures on time to discourage monopoly practices of the well-entrenched cartels of food commodities, comprising political elite and business tycoons who remain well connected in the corridors of powers no matter which political party is in government.

Previous two governments made Competitive Commission of Pakistan dysfunctional for the reemergence and strengthening of brute cartels of wheat, sugar, milk, rice, pulses and vegetables. These entities controlled the production, distribution and exports of these food commodities. They also enjoyed attractive subsidies from the taxpayers’ money for the export of wheat and sugar. The data of the National Demand Supply Cell, if regularly received by the Prime Minister, will apprise him not to allow the export of primary commodities the shortage of which is expected.

Supply augmenting measures of importing food commodities in short supply will certainly be not sustainable in the long run because of pressure on foreign currency reserves. Permanent solution lies in formulating real incentives based long term agriculture policy to boost production of cereal crops, pulses, vegetables, sugarcane, poultry and livestock for which great potential exists. Abolition of gas infrastructure development cess and symbolic increase in minimum support price of wheat and rice will not go far enough to substantially increase the output of agriculture.